Actually, I thought Micron wouldn't be impressive, so I secured a lot of cash.
The announced figures themselves turned out to be a very impressive announcement for market participants.
It appears Samsung Electronics and SK Hynix may be approaching a recovery to their highs today, and while there had been adjustments due to foreign investors' rebalancing, it seems it will end as a very short-term correction.
There are positive factors such as Hynix's ADR listing news and Samsung's share buyback (though it came out as being under consideration rather than confirmed by the company, it appears they considered share buyback along with their July 7 earnings release), and now that Micron has shown profits where earning 10 leaves 8 in profit, enormous capital appears to be rushing in.
Now, the point to note is
There will be tremendous leverage and investments, and it seems that unjustified declines may occur more frequently due to foreign investors' rebalancing going forward.
You need to hold some cash and adjust your allocation while checking the divergence to overcome declines, and ride the momentum during increases, and repeat this, but the question is what allocation to make for this. If it used to be 70% investment and 30% cash, now it might need to be 50% investment and 50% cash.
Of course, even if you just invest and forget about it until the end of this year, the returns should be sufficient.
July pension fund selling of 55 trillion won is waiting, which is a bit concerning, but still, since Samsung Electronics and Hynix will announce earnings in July, the possibility of them running up throughout the month has increased.
While there are several factors behind Micron's remarkable results, I suspect that the approximately 25% increase in DRAM prices over the past 3 months was not properly reflected in the calculations.
Currently, DRAM prices are still rising, and for high-capacity ECC RAM used in servers, there's no inventory left and prices are skyrocketing.
Based on my experience, people in different fields may not agree, but
When buying a server, RAM costs used to account for at most 15-20% of the price, but depending on the configuration, nowadays RAM accounts for nearly 50-70%. For storage, since SSD prices are also expensive, it's roughly 4.5 (RAM):3.5 (storage):2 (barebone + motherboard + CPU).
If you've been worried for a week, you can now let go of your worries, and if you've invested in semiconductors, it seems you can relax.
While it seems surrounding sectors will also rise as semiconductors go up, for the time being it's a semiconductor era, so rotation trading seems difficult. Lately, due to leverage, rotation isn't happening as all the capital goes to semiconductor leverage, which has actually worsened market imbalances.
Until Samsung Electronics' earnings announcement on July 7, I wish all stock investors enjoy the rally and achieve successful returns.
